Fed, ECB, Bank of England and other central banks lower basic interest rates

/INTERFAX-AFI, London, October 8, 08/ - Federal Reserve System of the USA (Fed), the European Central Bank (ECB), Bank of England, Bank of Canada as well as central Sweden and Switzerland banks lowered the basic interest rates by 0.5 percentage points, Bloomberg reported. The Fed reduced the rate to 1.5 % APR, the ECB - to 3.75 % APR, the Bank of England - to 4.5 % APR. The bank of Canada reduced the rate to 2.5 %, central Sweden - to 4.25 %. "The recent sharpening of financial crisis intensified risks of economy recession and that's why reduced risks for price stability - is said in the joint announcement of central banks. - Some depreciation of monetary-credit policy is therefore justified. ECB also decreased the minimal crediting rate and rate on deposits by 0.5 percentage points - to 4.75 % and 2.75 % correspondently. The new rate of ECB is effective since October 15. At the same time, Chinese central bank reduced the interest rate for the second time for the last three weeks - by 0.27 percentage points, to 6.93 % from 7.2 %. According to the USA Fed open markets Committee, which voted unanimously for rate decreasing, "economic data tells on significant economy recession during last months. Besides, intensification of crisis may affect expenditure rate on credit markets". The Fed also reduced discount rate by 0.5 percentage points - to 1.75 % APR. Futures quotations on American stock indexes as well as European markets grew on joint activities of the world central banks. Futures growing on S&P and Nasdaq indexes by 15:30 Moscow time exceeded 2 %, Dow Jones - 1.3%. European indexes Stoxx 50, CAC and DAX also grew by more than 2 %. Quotations of the USA treasury bonds fell on published data. Yield of decennial US Treasuries increased to 3.56 %, compared to 3.5 % on Tuesday. [2008-10-09]